WELSH councils were warned yesterday to work harder to collaborate in the delivery of services to prepare for an even tougher financial squeeze.

WELSH councils were warned yesterday to work harder to collaborate in the delivery of services to prepare for an even tougher financial squeeze.

Local government minister Carl Sargeant announced £4.37bn for council spending in 2013-14, an overall rise of about 1.5%.

But he refused to order councils to impose a council tax freeze and, as forecast in the Daily Post, he set aside £10m for a controversial new fund to encourage councils to cooperate across boundaries to cut costs.

County halls will receive £50m more in budgets but must decide themselves on a council tax freeze, as in England, or protect essential services like education and social care from cuts.

“It is imperative that councils put themselves in the best position to face future challenges by investing in regional collaboration now,” the minister said.

“I want local authorities to come forward with proposals for collaborative projects and take advantage of the funding pot that I am creating.”

Increases in grants in North Wales ranged from under 1% in Conwy, to 2.1% in Wrexham. Gwynedd would get a rise of 1.14%; Anglesey 1.07%; Denbighshire 1.01% and Flintshire 1.13%, compared to the Welsh average of 1.22%.

The ‘step change in ambition and pace’ required to prepare for the financial pressures ahead ‘simply has not materialised across Wales’, he said. “It is difficult to see a real will among councils to engage effectively with one another on the big issues,” he said.

“I am looking to local government to develop proposals which meet my expectations. If they do not, I will regard this as a strong indication of a failure to take seriously the need to improve services through collaboration.”

Councils must protect the most vulnerable in society and priorities of schools and social care, he said.

“Local authorities must consider carefully the balance between the need to sustain key services for their citizens and the need to limit any additional financial pressure on hard-pressed households.”

Funding for the council tax support scheme of around £214m is included for the first time as a result of the UK Government's decision to abolish council tax benefit from April 2013.

But the minister warned: “I am concerned that the cut may be greater than 10 % and that the cost of setting up and administering a new scheme will not be taken into account. I am continuing to press the UK government on these issues.”

Conservative shadow local government minister Janet Finch-Saunders, Aberconwy AM, said: "It is disappointing that Labour Ministers seem unwilling to pass on the funding they received for a council tax freeze to hard-pressed families, which would relieve the pressure on household bills and ease the financial burden on local authorities.”

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